Notice of Abolishment of Retirement Allowance System for Board Members

Mabuchi Motor Co., Ltd., (hereinafter referred to as the "Company") hereby notifies that it was resolved to abolish the retirement allowance system for directors and corporate auditors to reform a system of reward structure at the board of directors held on February 15, 2007.

1. The gist and the effective date of abolishment

In order to improve the reward structure for directors and corporate auditors, the existing retirement allowance system for them based on the seniority system and pay later will be abolished at the end of the 67th annual meeting of stockholders of the company in March 2008.
Therefore, the compensation of directors shall consist of monthly fixed payment and consolidated results - based variable pay (short-term incentive), which was approved at the 66th annual meeting of stockholders on March 29, 2007. The compensation of corporate auditors shall be monthly fixed payment only. Long-term incentive related to executive remuneration will be continued to discuss in the future.

2. Payment of retirement allowance according to abolishment

In accordance with the abolishment of the retirement allowance system, an agenda will be submitted to the 67th annual meeting this March to pay the appropriate retirement allowance to the present board members during their tenure until the end of this meeting. If the above agenda is approved, the payment of retirement benefit will be made at the time of each member's retire.